Economic Resources

Question 1

What are the four factors of production?

Answer 1

Land, Labour, Enterprise and Capital

Question 2

What do firms do with these resources?

Answer 2

Turn them into products that they sell for profit

Question 3

What is Labour?

Answer 3

Includes all of the workforce in an economy

Question 4

Is every worker unique with different skills?

Answer 4

Yes

Question 5

What is the value of a worker called?

Answer 5

Human capital

Question 6

How can a worker be valued?

Answer 6

By the income they earn, education and training, and likelihood to increase a businesses human capital

Question 7

What is Land?

Answer 7

It encompasses all of the natural resources that come from the earth that are used in the production of goods or services

Question 8

What is Capital?

Answer 8

Has a number of meanings e.g. money

-Refers to the man-made aids that are used in the production process e.g. machinery, tools, factories and offices

Question 9

Will capital goods bring a stream of income in the future?

Answer 9

Yes

E.g. a car being used as a taxi is a capital good, rather than one just for leisure

Question 10

What is Enterprise?

Answer 10

The entrepreneur takes land, labour and capital and organises them in order to produce products that will be profitable